TASE Tel Aviv Stock Exchange( Wikimpedia)
The Tel Aviv Stock Exchange (TASE) and the SFI Group (Social Finance Israel) entered into a new collaboration in the establishment of professional training and job placement for underprivileged populations in Israel.
The newly formed fund, said the organizations, will implement an innovative impact investment model, where social investors provide funding for training programs, and individuals bear the cost of training only upon successful placement in high-paying positions. This approach, they say, driven by “measurable results and a holistic perspective, motivates all stakeholders to make diverse employment a tangible reality.” This model has already been implemented in the United States and has shown impressive results.
The collaboration between TASE and SFI is to promote the latter’s career impact bonds (CIBs). These are outcomes-based bonds that SFI describes as an innovative impact investment model. In this model, social investors provide the necessary capital to cover training and support costs for participants. Only individuals who secure high-paying jobs are required to repay the cost of their training. The strategic model harnesses philanthropic funding to address many of the entry barriers experienced by underprivileged populations when integrating into the workforce. The program is based on a model developed by the Social Finance Global Network.
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SFI Group is a public benefit firm engaged in implementing innovative models for solving social issues in Israel and developing the impact investment market in Israel. Established by Sir Ronald Cohen, SFI is responsible, among other things, for the development and implementation of social impact bonds in Israel that have addressed pressing social issues including, reducing dropout rates from academic institutions, preventing Type-2 Diabetes, increasing the number of Bedouin high school students studying advanced math in Rahat, reducing loneliness among the elderly, reducing re-hospitalizations io individuals suffering from mental health issues and more.
Yaron Neudorfer, CEO and Founder of SFI, expressed his enthusiasm about the collaboration, stating, “Given the evolving labor market and the ongoing efforts of the government and various stakeholders to integrate underprivileged populations into quality employment, the key challenge lies in commitment to tangible employment outcomes, including placement, job retention, and pay equity. Recognizing this, SFI and TASE have identified the need for a creative, flexible, and sustainable solution, with the goal of ensuring ongoing employment and upward social mobility for program participants. We firmly believe that along with economic benefits, there are equally significant social and national gains to be achieved.”
Hani Shitrit Bach, EVP and Head of Listings at TASE, emphasized the significance of the collaboration, stating, “TASE’s partnership with SFI exemplifies the application of financial tools for societal benefit. As the home of all public companies in Israel, TASE plays a vital role in fostering integration and promoting workplace diversity, which is no longer viewed as a privilege but as an essential element for the continued prosperity and success of the Israeli economy. Advancing environmental, social, and governance (ESG) principles not only aligns with our values but also offers substantial economic benefits, playing a pivotal role in our journey towards sustainable growth and a fairer society.”
